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Retail and HNI investors collectively form 60% of the current Rs 51.09 lakh crore MF industry holding assets of Rs.13.58 lakh crore and Rs.17.12 lakh crore respectively.
In terms of investment channels, they largely prefer non-associate distributors like MFDs and NDs.
Notably, 70% of retail assets (Rs 9.53 lakh crore) and 61% (Rs 10.43 lakh crore) of HNI assets are through MFDs and NDs. On the other hand, direct plans account for 22% share (Rs 2.98 lakh crore) in retail and a 26% share (Rs 4.53 lakh crore) in the HNI space.
Associate distributors i.e. affiliates of fund houses (e.g. Axis Bank in the case of Axis MF) have the lowest share in individual business. Their respective share in retail and HNI assets is 8% (Rs 1.08 lakh crore) and 13% (Rs 2.16 lakh crore), respectivel
Fund category preference
Retail investors are more inclined towards equity.
90% of the total retail assets or Rs.12.16 lakh crore was in equity funds. Hybrid schemes were a distant second with 6% share in retail assets.
While debt funds account for 4% of the total retail AUM, 1% of the total retail assets was in ETFs.
In the HNI category, investors are inclined towards equity too. However, their inclination towards debt schemes is more than their retail counterpart.
While equity schemes form 62% (Rs 10.61 lakh crore) of the HNI asset base, debt schemes stand at 23% (Rs 3.98 lakh crore). Balance schemes form the next-highest share of 12% (Rs 2 lakh crore).
Similar to retail, ETF and FOFs form a modest part i.e. 2% (Rs 40,591 crore) and 1% (Rs 12,843 crore), respectively.
